Study Illustrates The Economic And Commercial Power Of Investing In Energy Efficient Buildings

Rhodium Group study released by United Technologies illustrates that a 30 percent increase in building efficiency would generate net annual positive cash flow of $65 billion for households, businesses and governments.

Study Illustrates The Economic And Commercial Power Of Investing In Energy Efficient Buildings

June 17, 2013

Study Illustrates The Economic And Commercial Power Of Investing In Energy Efficient Buildings

Posted by Heidi Schwartz

The impact of a 30 percent improvement in U.S. building efficiency by 2030 is the subject of the new report, Unlocking American Efficiency: The Economic and Commercial Power of Investing in Energy Efficient Buildings. The 32-page report was prepared on behalf of United Technologies Corporation by the Rhodium Group (RHG), which combines policy experience, quantitative economic tools and on-the-ground research to analyze global trends.

According to the findings, improving energy efficiency in buildings by 30 percent would create a $275 billion market for advanced technology, engineering and design services, and construction activity in the U.S. alone—that’s larger than the total U.S. advertising market. The energy savings would generate $34 billion per year for American businesses, net of investment expenses, that could either be used to hire more employees or invest in R&D or expanded production. And federal, state and local governments in budget-constrained times would save more than $8 billion annually, equivalent to funding the National Science Foundation or nearly all of the annual budget for the U.S. Environmental Protection Agency.

“Energy efficiency has played an important role in American productivity and environmental protection. Now building efficiency is a pivotal investment strategy to free an estimated $65 billion in annual cash flow for households, businesses and governments across the country,” said John Mandyck, chief sustainability officer, UTC Climate, Controls & Security. “Improving the energy efficiency of buildings increases the productivity of existing assets, guards against future energy price hikes and offers some of the most attractive rates of return available today. The first step in improving energy efficiency in buildings is letting building owners, tenants and investors know the scale of the opportunity at hand.”

Smart policy can serve as a catalyst for the investment in building efficiency solutions and includes such things as building labels and codes, effective standards, efficiency finance, portfolio standards and regulatory reform.

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